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Texas Becomes First State to Buy Bitcoin for Strategic Reserve

The $5 million purchase functions as a placeholder pending selection of a crypto custodian.

Overview

  • The comptroller executed the buy on Nov. 20 at a reported price of $91,336 per bitcoin, deploying half of the $10 million authorized reserve.
  • The office describes the holding as temporary as it solicits custody and management contracts for the Strategic Bitcoin Reserve.
  • SB 21 created the reserve and restricts eligible cryptocurrencies to those averaging at least $500 billion in market cap over the past 12 months.
  • Arizona and New Hampshire authorized similar funds without making purchases, while Michigan and Wisconsin made prior crypto allocations through public pensions.
  • Supporters frame the move as diversification and an inflation hedge, while critics cite volatility and Texas mining’s heavy power draw of 2,717 megawatts and research estimating about a 5% rise in electric bills.